Arbeitspapier

Incompatibility, product attributes and consumer welfare: evidence from ATMs

Incompatibility in market with network effects reduces consumers? ability to ?mix and match? components offered by different sellers, but can also spur changes in product attributes that might beneÞt consumers. In this paper, we estimate the effects of incompatibility on consumers in a classic hardware/software market: ATM cards and machines. We Þnd that while ATM fees ceteris paribus reduce the network beneÞt from other banks? ATMs, a surge in ATM deployment accompanies the shift to surcharging. This is valuable to consumers and often completely offsets the harm from higher fees. The results suggest that policy discussions of incompatibility must consider not only its direct effect on consumers, but also its effect on product attributes.

Sprache
Englisch

Erschienen in
Series: Working Paper ; No. 05-32

Klassifikation
Wirtschaft

Ereignis
Geistige Schöpfung
(wer)
Knittel, Christopher R.
Stango, Victor
Ereignis
Veröffentlichung
(wer)
University of California, Department of Economics
(wo)
Davis, CA
(wann)
2005

Handle
Letzte Aktualisierung
10.03.2025, 11:44 MEZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Knittel, Christopher R.
  • Stango, Victor
  • University of California, Department of Economics

Entstanden

  • 2005

Ähnliche Objekte (12)